Costco hit by profit warning; sector mixed

NEW YORK (MarketWatch) - Retail shares were mixed Wednesday, with a surprise profit warning from Costco Wholesale Corp. raising more worries about the outlook for the industry that has been battered by slowing consumer spending.

Costco
COST, +2.43%
shares dropped 12%. The largest U.S. wholesale club chain, one of the retailers that had benefited from budget-conscious shoppers seeking value in one-stop shops, said Wednesday that higher energy costs and a strategy to hold prices the same to drive demand are expected to lead its profit this quarter to be "well below" analyst expectations. See full story.

The news dragged down shares of other wholesale club retailers and discounters. BJ's Wholesale Club Inc.
BJ
shares declined 9.3%. Wal-Mart Stores Inc.
WMT, -0.37%
part of the Dow Jones Industrial Average and owner of the Sam's Club chain, saw its shares down 2.3%.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.